Abraaj Capital and the Karachi Electric Supply Company

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Description

In 2008, the Dubai-based private equity group Abraaj Capital Invested $360 million in Karachi Electric Supply Company, a troubled utility serving Pakistan's largest city. In 2010, the firm has made great strides in turning around the company but the transition is not complete. In fact, completing the task involves significant work in rebuilding the social contract in addition to correcting matters related to company management and electricity supply. Is this the direction for private equity in the future?

Learning objective:

To introduce the challenges of doing private equity in emerging markets and of Integrating ESG (environmental, social, and governance) goals into an investment program.